"We are making significant changes at IO Interactive as we align our business against a changing and challenging market," said IO Interactive in a statement issued to Develop.

"The studio will focus resolutely on the future vision for the Hitman franchise, and is in pre-production on a new triple-A Hitman project.

"However we have taken the difficult decision to cancel other studio projects and initiatives at IO and reduce the workforce in this studio - which will impact almost half of the employees currently at IO - as we make internal adjustments to face the challenges of today's market.

"For those affected, we are extremely grateful for the hard work which they have contributed, and where it's possible and appropriate to relocate staff to open positions at other studios within the group, we will try to do so. We are also reaching out to other companies for outplacement opportunities. We sincerely wish them well in their future careers."

IO Interactive's most recent release was 2012's Hitman: Absolution. Watch a trailer for the game below: